Options Trading News

SBA Communications has been climbing all year, and a large trade sees gains holding for the cell-phone tower operator.

More than 9,100 of the SBAC options have changed hands so far today, compared to a daily average of just 429 contracts. A trader sold 6,500 March 65 puts for $0.90 in volume that was 10 times the previous open interest and therefore a new position, according to optionMONSTER systems.

The put selling is a bet that SBAC will hold above $65 through expiration in mid-March. The trader is also showing a willingness to buy shares on a pullback below that level. (See our Education section)

SBAC is down 1.18 percent to $69.59 in early afternoon trading. Shares have been trending steadily higher from below $35 last October and posted a 52-week high of $70.98 on Monday.

So far, my articles have taken you through a logical progression of option theory and fundamental concepts of options. As of yet, I have not mentioned a single strategy and for a good reason! The actual application of a strategy should come AFTER you learn about the option product itself.

optionMONSTER® provides stock market insight, advanced options education, and actionable trade ideas to meet the needs of do-it-yourself investors. After spending decades in the trading pits of Chicago, Jon 'DRJ' and Pete Najarian founded the company in 2005 to help people better manage their own investment portfolios.

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